Congress passed the Taxpayer Relief Act of 1997. The Act creates several new tax benefits for families who are saving for, or already paying, higher education costs or are repaying student loans.
A few of the benefits provided by the Act include the Hope Scholarship and Lifetime Learning Credits, and a student loan interest deduction. These benefits help open the doors of college to a new generation, with the largest investment in higher education since the G.I. Bill 50 years ago.
Information included in this site has been tailored specifically for Doane College parents, students, faculty, and staff.
IRS Links
- IRS Notice 97-60 - Details and a Question/Answer section for each of the higher education tax incentives included in the Taxpayer Relief Act of 1997.
- IRS Publication 970 - Informational overview of the higher education tax incentives included in the Taxpayer Relief Act of 1997.
- Hope Scholarship Credit - Non-refundable tax credit for qualified tuition expenses paid in the first two years of post-secondary education to an eligible educational institution.
- Lifetime Learning Credit - Non-refundable tax credit for qualified tuition expenses paid to an eligible educational institution.
- Student Loan Interest Deduction - Deduction available only on student loan interest paid during the first 60 months in which interest payments are required.
- Form 8863 - Tax form needed to claim the Hope Scholarship and Lifetime Learning Credits.
- Education IRAs - Contribution to an Education IRA for the purpose of paying the qualified higher education expenses of a designated beneficiary.
IRS Form 1098E
Student loan borrowers who have entered into repayment on their student loans may be eligible to deduct the interest paid during 1998. Lending institutions are in the process of preparing the federal form 1098E to be mailed to borrowers. These forms will provide the borrowers with the total amount of interest paid while in repayment on their student loan during 1998.